This franchise concept resembles a supplier-distributor relationship. The franchisor is responsible for making the product available and the distributor can then resell the product. The main thing given by the franchisee is the product, while it includes training, support, etc. with the business format. With this type of franchise, the franchisee can be much more independent since he does not have the constraints and guidelines of a franchisee in commercial format. However, a franchisee for the distribution of products must always follow certain policies, for example. B the sale of products on an exclusive or semi-exclusive basis. The franchisee must pay a fee for the use of the brand and brands as well as the products he wishes to sell. A legally valid and binding agreement between the franchisee and the franchisee is legally called a franchise agreement.
. But of course, since you act as a franchisor in the region, you also get the benefit of receiving fees and royalties from franchisees in the region. Franchises area development This license generally gives the franchisee the right to open a certain number of franchises in a given area. There is usually a production plan in which the franchisee must open a certain number of franchises for the development of the territory during a given period. As long as the franchisee stays on track when opening franchises in the area, they have an exclusive zone where no other franchisee can open a franchise. Franchisees for territorial development generally also pay deductibles and reduced royalties. Thus, not only do you have the total revenue potential with one or more units that you open in your territory, but you will also receive a share of all royalties and royalties paid in that area (including part of the initial franchise fees). It can be a great way to build prosperity and a residual source of income! Trademarks, patents and manuals are also part of the agreement that the franchisee offers to the franchisee….